Nothing wrong with looking around and testing the waters. Also check the bank valuations for the flats you are checking out. I would make sure that you can actually get the loan before offering of course. Prices are very sticky right now, and definitely so in desirable neighborhoods. People who want to get out now want to get out before they suffer losses. So why would they lower the price significantly? I've seen some where it's obvious they are listing a high price to let people talk it down a little. So right now there is a gap, although there are still people buying too. I'm wary as obviously you could be losing out on your equity in a very short period of time if you choose to buy now.
Right now most buyers want a great deal, yet sellers are trying to sell at a premium. Just keep your finger on the beat of the market. It's bound to change. People nowadays seem to think the HK market never goes down. I don't get the thinking, since it is always in cycles. But people seem to think because there are a ton of people wanting to buy, they all have a ton of money and want to pay more. The fact is they all were willing to pay more because they foresee prices to keep increasing. When prices start dropping, it'll be a lot of people afraid to buy, and the people who are willing will only pay a lesser price. you try telling that to HK people and they'll think you're silly and 2008 never happened. The 97 peak took 15 years to recover.
I'd say that huge drop was pretty crazy and unlikely to happen again especially considering China's future potential, but a 20 pct drop isn't out of the question, which would wipe out your down payment.
This time next year is probably when we will see more of the downstream effects of the recent turmoil, IMO